Competitive Advantage

Competitive Advantage • Always looking for a C.A. (a sustainable one) • Sustainable -- VRIO • Information systems can be a C.A. • Can you think of companies that have IS as a CA?

Example • What are the processes? • What information do we generate? • What do we do with it? • Who needs access to the info?

Types of Info Systems Each functional area … Marketing Management/Production Human Resources Finance Must work independently and together

More specifically … • Transaction Processing Systems (TPS) • Figure 2.2 • Business Intelligence Systems • Mgmt Info Systems • Routine reports • Figure 2.3 • Decision Report Systems (DSS) • Non-routine • Queries • Executive Support Systems • Incorporates outside data • Often graphs • Digital dashboards

Linking the Enterprise Four major enterprise applications • Enterprise Systems … • Supply Chain Management Systems • Customer Relationships Management Systems • Knowledge Management Systems See Figure 2-6

Enterprise Systems • AKA Enterprise Resource Planning Systems • Integrates information from all functional areas into a single application. • Used to be fragmented • NIC Connect

Collaboration & Teamwork Systems • Define Collaboration & Teamwork • Why are they important? • Changing nature of work • Growth in professional work • Changing organizational structure • Changing scope of the firm • Emphasis on innovation • Changing culture of work

Benefits of C & T • Productivity • Quality • Innovation • Customer Service • Financial Performance

Building a Collaborative Culture • Trust • Delegation of responsibility & authority • Reward Structure • Team building, coordination & monitoring vs. supervising and controlling

Tools • E-mail … e.g. outlook • Instant Messengers & Skype • Social networking • Wikis • Virtual worlds • Collaboration Software • e.g. Sharepoint • Lotus Notes (IBM Notes) Time & Location Matrix Fig. 2-8

The IS department • Specialists • Programmers • System analysts • Info system managers • Managers • CIO • CSO • CPO … not CP30 • CKO

Chapter 2 Homework • 2 Management Decision Problems • Software skills

BUS 290: MIS Chapter 3 Information Systems, Organizations, Strategy

Learning Objectives • What do managers need to know about organizations to develop & use I.S. successfully? Impact of IS? • How does Porter’s Competitive forces model help develop competitive strategies using I.S.? • How do the Value Chain & Value Web models help identify opportunities for strategic I.S. applications • How do I.S. help use synergies, core competencies and network-based strategies to achieve C.A.? • What are the challenges posed by S.I.S and how should they be addressed?

Organizations & I.S. • Complex interaction – impacted by • Organizational structure • Business processes • Office politics • Culture • Mgmt. Decisions • Surrounding environments • I.S. will alter the social & work life of the firm • Must understand the organization to properly develop I.S.

Organizations • Stable formal social structure • Hierarchy/structure (Mintzberg’s 5 types) • Rules, policies & procedures (SOP’s) • Processes • Culture • Values • Norms • Politics • Rights & Obligations • People & relationships • Change inputs into outputs

Environments • External • PESTEL-G • Internal • Functional areas • Structure & Infrastructure • Competitive

Disruptive Technologies Table 3-1 More accurately, Disruptive Technology Advances e.g. Computers, Digital cameras, Laptops, mobile phones First movers, fast followers Marketing Myopia

Impacts Economic • Production costs • Transaction costs • Inventory costs • Information costs • Communication costs

Concerns • Resistance to change • Impact of IS on relationships (internal & external)

Competitive Environment • Porter’s 5 forces model • Impact of IS on competitive forces.. • Cost leadership • Product differentiation • Conjoint Analysis • Niche marketing • Customer & supplier intimacy • Switching costs

Value Chain • Porter again • Primary Activities • Inbound Logistics • Operations • S n M • Service • Outbound Logistics • Secondary Activities • Admin • HR • Technology • Procurement • Benchmarking/best practices

Odds and ends • Supply Chain • Synergies • Virtual companies • Sustaining your C.A. • Checklist on page 91

Competitive Advantage